Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
What is your net gross monthly household income. (Net gross = the gross income minus business expenses.)
Another last question - is the 1 million debt secured or unsecured? (Can the creditor take the business - or anything else - if you do not pay?)
Your gross monthly income is close to the state median, which means you may not qualify for a Chapter 7. However, you can deduct what you pay for your parent from your income. How much do you pay per month to support your parent?
To qualify for a Chapter 7, your total household gross monthly income must be less than - or not much more than - $5,723. As the court looks at the average monthly income for the 6 months before filing, and you can deduct the $1,000 that you pay to support your parent, you may and may not qualify to file a Chapter 7 Bankruptcy - which would allow you to have your debts discharged without having to pay anything.
If your income level does not allow you to file a Chapter 7, you would be able to file a Chapter 11, which would require you to make some payments to your creditors.
In either case, you would have a $21,825 exemption for all property, including your share of the lot, and all bank accounts.
Regarding the lot, it would not make a difference if the lot was designated to be a burial plot - the same exemption would apply.
If you withdraw the money from your bank accounts, the trustee can - and probably will - ask for proof of what you did with it.
You are allowed to give up to $200 per year per family member (not including the support for your parent). The Bankruptcy trustee can take back anything that was given away in the 2 year prior to filing the Bankruptcy that does not fall into this parameter.
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Having assets, or having had assets, is not a reason for dismissal.
The only reason for dismissal - that I know of - is income that is too high.
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